| Abstract: |
An important feature of the process of transformation in developing economies
is the depth and outreach of their capital and credit markets, i.e. financial
development. As this is often considered crucial to support growth and poverty
reduction, it is important to understand what structural factors drive it. The
literature so far has assessed the role of historical, political, cultural,
and institutional determinants, but has not yet adequately investigated the
role of inequality. This paper addresses this lacuna by empirically
investigating its effects. |